LONDON: Britain's economy will retain deep scars long after the pandemic has passed, slowing growth and adding to the strain on the public finances, a major report ahead of the government's budget concluded. The findings from the Institute for Fiscal Studies (IFS) illustrate the pressures facing Chancellor of the Exchequer Rishi Sunak, with rising prices and interest rates likely to add £15bil (US$20bil or RM83.54bil) to the Treasury's debt payments this year and beyond. The projection sketch out the tensions from inflation to increased demands on the public purse that Sunak will have to juggle in his statement on Oct 27. It also leaves Prime Minister Boris Johnson's government little cash to splurge on big projects like improvements to road and railways popular with voters. With pressure to increase funds on healthcare, "there will be little or no scope to increase spending on things like like local government, the justice system and further education after a decade of sharp cuts," said IFS director Paul Johnson. Economists at Citi, which helped produce the report, said output is on course to remain below its pre-pandemic level at the end of this year, and as much as 3% of output has been lost… Read full this story
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